CHINA RECYCLING ENERGY CORPORATION (NASDAQ:CREG) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement
On December 16, 2019, China Recycling Energy Corporation, a Nevada corporation (the “Company”), entered into an Amendment to Forbearance Agreement (the “Amendment Agreement”) with Iliad Research and Trading, L.P., a Utah limited partnership (the “Lender”).
to the Amendment Agreement, the parties agreed, in the event Lender delivers a Redemption Notice to the Company and the Redemption Amount set forth therein is not paid in cash to Lender within three (3) Trading Days, then the applicable Redemption Amount shall be increased by 25% (the “First Adjustment,” and such increase to the Redemption Amount, the “First Adjusted Redemption Amount”). In the event the First Adjusted Redemption Amount is not paid within three (3) Trading Days after the date of First Adjustment, then the First Adjusted Redemption Amount shall be increased in accordance with the following formula: $0.30 divided by the lowest Closing Trade Price of the Common Stock during the twenty (20) Trading Days prior to the date of Lender delivers the Redemption Notice and the resulting quotient multiplied by the First Adjusted Redemption Amount (the “Second Adjustment,” and such increase to the First Adjusted Redemption Amount, the “Second Adjusted Redemption Amount”); provided, however, that such formula shall only be applied if the resulting quotient is greater than one (1) and such formula shall in no event be used to reduce the First Adjusted Redemption Amount. Upon payment in cash of the First Adjusted Redemption Amount or Second Adjusted Redemption Amount, the Outstanding Balance will be reduced by the original amount set forth in the Redemption Notice. The foregoing adjustment procedure shall terminate at such time as Lender has submitted (and been paid on) redemptions or have repaid Note amount equal to $1,173,480, including all redemptions that have occurred prior to the date of this Amendment.
The foregoing description of the Amendment to Forbearance Agreement is not complete and is qualified in its entirety by reference to the full text of the Amendment to Forbearance Agreement, a copy of which is attached hereto as Exhibit 10.1 and incorporated by reference herein.
Item 9.01 Financial Statements and Exhibits
(d) The following exhibits are filed with this report.
| 10.1 | Amendment to Forbearance Agreement by and between China Recycling Energy Corporation and Iliad Research and Trading, L.P. dated December 16, 2019 |
CHINA RECYCLING ENERGY CORP Exhibit
EX-10.1 2 f8k121619aex10-1_china.htm AMENDMENT TO FORBEARANCE AGREEMENT BY AND BETWEEN CHINA RECYCLING ENERGY CORPORATION AND ILIAD RESEARCH AND TRADING,…
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About CHINA RECYCLING ENERGY CORPORATION (NASDAQ:CREG)
China Recycling Energy Corporation is engaged in the recycling energy business, providing energy savings and recycling products and services. The Company develops waste energy recycling projects for industrial applications in China. It offers waste energy recycling systems to companies for use in iron and steel, nonferrous metal, cement, coal and petrochemical plants. Its waste pressure-to-energy solution consists of the blast furnace top gas recovery turbine unit (TRT), a system that utilizes high pressure gas emitted from the blast furnace top to drive turbine units and generate electricity. Its waste heat-to-energy solution consists of heat power generation projects for applications in cement, steel, coking coal and nonferrous metal industries, which collect the residual heat from various manufacturing processes, such as the entrance and exit ends of the cement rotary kilns, to generate electricity.